LPG price increased by Rs 2.94 per cylinder

NEW DELHI: The price of subsidized cooking gas (LPG) increased by 2.94 rupees per bottle on Wednesday because of the fiscal impact of the change in base price.

A subsidized LPG cylinder of 14.2 kg will cost 505.34 rupees from midnight tonight, up from 502.40 rupees now, said Indian Oil Corp (IOC), the country's largest fuel retailer, in a statement.

This is the sixth consecutive monthly rate increase since June. Since then, all rates have risen by 14.13 rupees per cylinder.

All LPG consumers must purchase fuel at the market price. However, the government subsidizes 12 cylinders of 14.2 kg each per household over the course of a year by providing the grant amount directly to users' bank accounts.

The amount of this subsidy varies from month to month depending on the evolution of the average international LPG reference rate and the exchange rate.

When international rates rise, the government gives a higher subsidy. However, according to the tax rules, the GST GST must be calculated at the fuel market rate. The government may choose to subsidize part of the price, but the tax will have to be paid at market rates.

This resulted in an increase in the price.

LPG rates at unsubsidized market prices increased by Rs 60 per cylinder to Rs 880.

"While the price of non-subsidized LPG in Delhi will increase by Rs 60 per cylinder in November 2018, mainly because of fluctuating international prices and exchange rate fluctuations, the real impact on customers Domestic subsidized LPGs is only cylinder, which is mainly due to the GST, "the statement said.

The transfer of subsidy to customers' bank accounts was increased to Rp. 433.66 per cylinder in November 2018 from C $ 376.60 per cylinder in October 2018.

"Thus, the subsidized domestic GPL customer is protected against rising LPG prices," he said.

Due to rising world tariffs, the price of non-subsidized LPG in Delhi will increase by Rs 60 per cylinder. The balance of Rs. 57.06 (Rs. 60 minus Rs. 2.94) is compensated for the client by increasing the transfer of the grant to his bank account. As a result, the subsidy transfer to the client's bank account was increased to 373.60 rupees in November from 376.60 rupees per cylinder in October.